HOUSE MEMORIAL 76

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Larry R. Scott and James R.J. Strickler

 

 

 

 

 

A MEMORIAL

RECOGNIZING NEW MEXICO'S OIL AND NATURAL GAS INDUSTRY FOR REDUCING METHANE EMISSIONS WHILE INCREASING PRODUCTION AND REVENUE TO THE STATE.

 

     WHEREAS, New Mexico is one of America's leading energy producers; it is ranked third in oil production and ninth in natural gas production and is at the center of an energy resurgence that is attracting interest from around the world; and

     WHEREAS, ten of New Mexico's counties currently produce oil, natural gas or both; and

     WHEREAS, the revenues collected from the oil and natural gas industry in New Mexico help fund the state's schools, roads and public facilities; and

     WHEREAS, the oil and gas industry in New Mexico is the state's leading educational supporter and provides over ninety percent of all school capital investment through the land grant permanent fund, also known as the permanent school fund; and

     WHEREAS, labor statistics indicate that approximately one hundred thousand New Mexicans are either directly or indirectly employed by the oil and natural gas industry and earn an average salary of approximately seventy thousand dollars ($70,000), compared to the average salary in New Mexico of forty-five thousand dollars ($45,000); and

     WHEREAS, the New Mexico tax research institute, having analyzed data from the legislative finance committee and the department of finance and administration, estimates that the oil and natural gas industry in New Mexico contributed approximately one billion seven hundred forty-one million eight hundred thousand dollars ($1,741,800,000) to state revenue, which comprised roughly twenty-nine and six-tenths percent of the general fund, during fiscal year 2017; and

     WHEREAS, the oil and natural gas industry in New Mexico also contributed approximately seven hundred fifty-seven million seven hundred thousand dollars ($757,700,000) to the corpora of the land grant permanent fund and the severance tax permanent fund in fiscal year 2017; and

     WHEREAS, as of fiscal year 2017, ninety-six and eight-tenths percent of the land grant permanent fund and eighty- seven percent of the severance tax permanent fund are composed of contributions made by the oil and natural gas industry in New Mexico through the payment of royalties and severance taxes; and

     WHEREAS, the New Mexico tax research institute estimates that in fiscal year 2017, the oil and natural gas industry generated approximately seven hundred eleven million dollars ($711,000,000) in funding for public schools in New Mexico and nearly two hundred twenty-three million dollars ($223,000,000) for colleges and universities in the state; and

     WHEREAS, according to the United States department of the interior, New Mexico earned four hundred fifty-five million dollars ($455,000,000) from energy and mineral production on federal and tribal lands during fiscal year 2017, an increase of eighty-six million five hundred thousand dollars ($86,500,000) from the previous year; and

     WHEREAS, approximately seventy percent of year-over-year growth in estimated revenue collection in fiscal year 2018, according to legislative finance committee economists, is attributed to increased oil and natural gas production, higher severance tax collections, improved oil and natural gas industry-related rents and royalties and additional gross receipts tax revenue from the Permian basin in Eddy and Lea counties; and

     WHEREAS, natural gas, which primarily consists of methane with smaller quantities of other hydrocarbons, is the second- largest source of electricity generation in New Mexico and provides heating for two-thirds of the state's households, according to the United States energy information administration; and 

     WHEREAS, New Mexico's oil and natural gas producers are reducing emissions of methane by innovating and investing in cutting-edge technologies to further minimize the industry's environmental footprint while safely and responsibly growing energy production; and

     WHEREAS, despite significant increases in oil and natural gas production in New Mexico, recent data from the United States environmental protection agency's greenhouse gas reporting program indicates that between 2011 and 2016, emissions of methane from large oil and natural gas facilities fell by forty-seven percent in the San Juan basin in northwest New Mexico and by six percent in the Permian basin in southeast New Mexico; and

     WHEREAS, during the same period of time, 2011 to 2016, oil production more than doubled in the state, based primarily on gains in the Permian basin, and despite delays in permitting and constructing additional pipelines and treatment facilities used to process natural gas associated with increased oil production, methane emissions declined; and

     WHEREAS, on December 5, 2017, many of New Mexico's oil and natural gas producers helped to form a new national coalition called the environmental partnership, which seeks to accelerate further voluntary reductions of methane emissions in operations across the United States through the use of leak detection and repair; replacement, removal or retrofit of high-bleed pneumatic controllers with low- or zero-emitting devices; and implementation of best practices to minimize emissions during manual liquids unloading for natural gas production sources;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the leadership and accomplishments of New Mexico's oil and natural gas industry in reducing methane emissions while increasing production and revenue to the state be recognized; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor, the chair and vice chair of the legislative finance committee, the director of the legislative finance committee, the secretary of energy, minerals and natural resources, the secretary of finance and administration, the secretary of environment, the commissioner of public lands and the members of the New Mexico congressional delegation.

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